Maryland Governor Overhauling Student Loans
Maryland student loans are being overhauled by Governor, Larry Hogan, who is pledging millions of dollars in relief to help student loan borrowers who deal with high tuition cost and massive debt.
Maryland is getting behind their struggling college students in a big way. Governor Larry Hogan is pledging millions of dollars in relief to help student loan borrowers who deal with high tuition cost and massive debt.
Hogan has proposed legislation that would make student loan interest payments tax-deductible for all state residents that earn less than $200,000 a year or less than $250,000 per couple. Hogan also proposed a cap tuition growth of 2% at all universities and colleges. He also suggested making targeted investments in priority projects for colleges.
It is noted by the Hogan administration that through the proposal, the majority of Maryland residents with student debt will be able to deduct 100% of the interest paid on their loans from their tax return. Hogan has said that when this starts in 2018 the proposal would save residents with student loans a total of approximately $20 million each year.
Hogan’s aim would be to make public colleges more affordable for the struggling college students of Maryland. The state’s universities wanted to raise their tuition 5% in 2017. Instead of colleges needing to increase tuition that much the state would partner with them and invest $17.5 million which would allow tuition growth to cap at 2%.
“Having a college education is more important now than ever before, but the harsh reality many face today is that earning a college degree often goes hand-in-hand with accumulating crippling college debt,” said Governor Hogan. “We believe that our new Student Debt and Tuition Relief Initiatives will provide much-needed relief from student loan debt, and will help us continue to make college in Maryland more affordable.”
Hogan has announced an investment of over $380 million as part of the legislation that will help with Maryland’s high education projects. Some of the projects include construction of new science buildings across different schools, a student services building, as well as continued construction on the James Clark Bioengineering Building at the University of Maryland. Community colleges in the state will receive $56 million to fund all of their requested projects for the year.
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